-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
      name:  <unnamed>
       log:  C:\Users\knm4642\Dropbox\Nha Meo Heo Beo\_JMP\WORKING FOLDER\Table V_Director selection.log
  log type:  text
 opened on:  18 Feb 2026, 23:46:14

. 
. //PREPARE DATA
. use "Director CEO firm year sample.dta", clear

. * construct director type indicators
. cap drop *dir

. gen newdir = year == DIR_firstyear_key & year != DIR_lastyear_key & year != termendyr

. gen leftdir = year == DIR_lastyear_key & year != termendyr & DIR_age < 75 //90th percentile in age at leaving board

. gen remdir = DIR_firstyear_key < termstartyr & DIR_lastyear_key >= termendyr

. bysort boardid ceoid termno directorid: egen NEWdir = max(newdir)

. bysort boardid ceoid termno directorid: egen LEFTdir = max(leftdir)

. bysort boardid ceoid termno directorid: egen REMdir = min(remdir)

. * compute average trust by director type
. cap drop *dirtrust

. bysort boardid ceoid year: egen tempnew = mean(DIR_trust) if newdir
(300,725 missing values generated)

. bysort boardid ceoid year: egen newdirtrust = mean(tempnew)
(212,250 missing values generated)

. bysort boardid ceoid year: egen tempstay = mean(DIR_trust) if newdir & !LEFTdir
(305,518 missing values generated)

. bysort boardid ceoid year: egen staydirtrust = mean(tempstay)
(224,274 missing values generated)

. bysort boardid ceoid year: egen templeft = mean(DIR_trust) if leftdir
(312,093 missing values generated)

. bysort boardid ceoid year: egen leftdirtrust = mean(templeft)
(237,292 missing values generated)

. bysort boardid ceoid year: egen tempmean = mean(DIR_trust)
(170 missing values generated)

. bysort boardid ceoid year: egen meandirtrust = mean(tempmean)
(170 missing values generated)

. drop temp*

. * compute director counts
. bysort boardid ceoid year: egen countnew = sum(newdir)

. bysort boardid ceoid year: egen countstay = sum(newdir & !LEFTdir)

. bysort boardid ceoid year: egen countleft = sum(leftdir)

. bysort boardid ceoid year: gen count = _N

. * set globals
. global firm = "firmage firmage2"

. global ceo = "gender age age2 yrinco i.education"

. global sample = "year < 2012 & !nonUS & baselinesample"

. global cluster = "mainethcode"

. 
. 
. //PREPARE TABLE
. eststo clear

. * observation unit: directorid x boardid x ceoid x year
. eststo col1: /// new directors
>         reghdfe DIR_trust trust ${firm} ${ceo} if ${sample} & newdir, ///
>                 a(boardid year) cluster(${cluster}) keepsin
WARNING: Singleton observations not dropped; statistical significance is biased (link)
(MWFE estimator converged in 9 iterations)

HDFE Linear regression                            Number of obs   =     17,218
Absorbing 2 HDFE groups                           F(  10,     37) =       5.88
Statistics robust to heteroskedasticity           Prob > F        =     0.0000
                                                  R-squared       =     0.2374
                                                  Adj R-squared   =     0.0509
                                                  Within R-sq.    =     0.0005
Number of clusters (mainethcode) =         38     Root MSE        =     0.0549

                           (Std. err. adjusted for 38 clusters in mainethcode)
------------------------------------------------------------------------------
             |               Robust
   DIR_trust | Coefficient  std. err.      t    P>|t|     [95% conf. interval]
-------------+----------------------------------------------------------------
       trust |   .0285416   .0159968     1.78   0.083     -.003871    .0609543
     firmage |  -.0016927   .0007617    -2.22   0.032     -.003236   -.0001494
    firmage2 |  -4.08e-06   8.59e-06    -0.48   0.637    -.0000215    .0000133
      gender |  -.0026986   .0059468    -0.45   0.653    -.0147481    .0093508
         age |  -.0002604   .0010074    -0.26   0.798    -.0023016    .0017809
        age2 |   7.72e-07   8.96e-06     0.09   0.932    -.0000174    .0000189
      yrinco |   .0001611   .0000955     1.69   0.100    -.0000324    .0003547
             |
   education |
          2  |   .0010512   .0043285     0.24   0.809    -.0077192    .0098215
          3  |  -.0014095   .0042048    -0.34   0.739    -.0099293    .0071102
          4  |   .0004641    .005598     0.08   0.934    -.0108785    .0118068
             |
       _cons |   .5814903   .0464112    12.53   0.000     .4874523    .6755283
------------------------------------------------------------------------------

Absorbed degrees of freedom:
-----------------------------------------------------+
 Absorbed FE | Categories  - Redundant  = Num. Coefs |
-------------+---------------------------------------|
     boardid |      3363           0        3363     |
        year |        12           1          11     |
-----------------------------------------------------+

.                 estadd local sample     "New"

added macro:
             e(sample) : "New"

.                 estadd local obsunit    "D-F-Y-CEO"

added macro:
            e(obsunit) : "D-F-Y-CEO"

.                 estadd local FE         "X"

added macro:
                 e(FE) : "X"

.                 estadd local controls   "X"

added macro:
           e(controls) : "X"

.                 distinct boardid if e(sample)

         |        Observations
         |      total   distinct
---------+----------------------
 boardid |      17218       3363

.                 eststo col1, add(nofirms r(ndistinct))
(e(nofirms) = 3363 added)

. eststo col2: /// staying directors
>         reghdfe DIR_trust trust ${firm} ${ceo} if ${sample} & newdir & !LEFTdir, ///
>                 a(boardid year) cluster(${cluster}) keepsin
WARNING: Singleton observations not dropped; statistical significance is biased (link)
(MWFE estimator converged in 9 iterations)

HDFE Linear regression                            Number of obs   =     14,428
Absorbing 2 HDFE groups                           F(  10,     37) =       8.38
Statistics robust to heteroskedasticity           Prob > F        =     0.0000
                                                  R-squared       =     0.2715
                                                  Adj R-squared   =     0.0497
                                                  Within R-sq.    =     0.0008
Number of clusters (mainethcode) =         38     Root MSE        =     0.0547

                           (Std. err. adjusted for 38 clusters in mainethcode)
------------------------------------------------------------------------------
             |               Robust
   DIR_trust | Coefficient  std. err.      t    P>|t|     [95% conf. interval]
-------------+----------------------------------------------------------------
       trust |   .0367287   .0163849     2.24   0.031     .0035297    .0699278
     firmage |  -.0016081   .0011928    -1.35   0.186    -.0040249    .0008087
    firmage2 |  -3.97e-06   8.91e-06    -0.45   0.658     -.000022    .0000141
      gender |  -.0049964   .0050432    -0.99   0.328    -.0152149     .005222
         age |  -.0002825   .0008403    -0.34   0.739    -.0019852    .0014202
        age2 |   7.99e-07   7.67e-06     0.10   0.918    -.0000147    .0000163
      yrinco |   .0001202   .0001188     1.01   0.318    -.0001205     .000361
             |
   education |
          2  |    .000516   .0068376     0.08   0.940    -.0133384    .0143704
          3  |   -.003123   .0067122    -0.47   0.644    -.0167233    .0104772
          4  |  -.0010637   .0081087    -0.13   0.896    -.0174935     .015366
             |
       _cons |   .5817219   .0422439    13.77   0.000     .4961276    .6673161
------------------------------------------------------------------------------

Absorbed degrees of freedom:
-----------------------------------------------------+
 Absorbed FE | Categories  - Redundant  = Num. Coefs |
-------------+---------------------------------------|
     boardid |      3347           0        3347     |
        year |        12           1          11     |
-----------------------------------------------------+

.                 estadd local sample     "Staying"

added macro:
             e(sample) : "Staying"

.                 estadd local obsunit    "D-F-Y-CEO"

added macro:
            e(obsunit) : "D-F-Y-CEO"

.                 estadd local FE         "X"

added macro:
                 e(FE) : "X"

.                 estadd local controls   "X"

added macro:
           e(controls) : "X"

.                 distinct boardid if e(sample)

         |        Observations
         |      total   distinct
---------+----------------------
 boardid |      14428       3347

.                 eststo col2, add(nofirms r(ndistinct))
(e(nofirms) = 3347 added)

. eststo col3: /// leaving directors
>         reghdfe DIR_trust trust ${firm} ${ceo} if ${sample} & leftdir, ///
>                 a(boardid year) cluster(${cluster}) keepsin
WARNING: Singleton observations not dropped; statistical significance is biased (link)
(MWFE estimator converged in 9 iterations)

HDFE Linear regression                            Number of obs   =     10,752
Absorbing 2 HDFE groups                           F(  10,     37) =      12.60
Statistics robust to heteroskedasticity           Prob > F        =     0.0000
                                                  R-squared       =     0.2887
                                                  Adj R-squared   =     0.0282
                                                  Within R-sq.    =     0.0016
Number of clusters (mainethcode) =         38     Root MSE        =     0.0529

                           (Std. err. adjusted for 38 clusters in mainethcode)
------------------------------------------------------------------------------
             |               Robust
   DIR_trust | Coefficient  std. err.      t    P>|t|     [95% conf. interval]
-------------+----------------------------------------------------------------
       trust |  -.0471732   .0253199    -1.86   0.070    -.0984762    .0041299
     firmage |   .0005541   .0017484     0.32   0.753    -.0029886    .0040968
    firmage2 |  -4.71e-06   4.26e-06    -1.10   0.276    -.0000133    3.93e-06
      gender |   .0067482   .0070536     0.96   0.345    -.0075437    .0210402
         age |   .0010507   .0007225     1.45   0.154    -.0004132    .0025145
        age2 |  -7.30e-06   7.36e-06    -0.99   0.328    -.0000222    7.61e-06
      yrinco |   .0000936   .0001261     0.74   0.463     -.000162    .0003492
             |
   education |
          2  |  -.0017617   .0070714    -0.25   0.805    -.0160897    .0125662
          3  |   .0026929   .0069267     0.39   0.700    -.0113419    .0167278
          4  |   .0011704   .0093529     0.13   0.901    -.0177804    .0201211
             |
       _cons |   .5298138   .0442482    11.97   0.000     .4401585    .6194691
------------------------------------------------------------------------------

Absorbed degrees of freedom:
-----------------------------------------------------+
 Absorbed FE | Categories  - Redundant  = Num. Coefs |
-------------+---------------------------------------|
     boardid |      2862           0        2862     |
        year |        12           1          11     |
-----------------------------------------------------+

.                 estadd local sample     "Leaving"

added macro:
             e(sample) : "Leaving"

.                 estadd local obsunit    "D-F-Y-CEO"

added macro:
            e(obsunit) : "D-F-Y-CEO"

.                 estadd local FE         "X"

added macro:
                 e(FE) : "X"

.                 estadd local controls   "X"

added macro:
           e(controls) : "X"

.                 distinct boardid if e(sample)

         |        Observations
         |      total   distinct
---------+----------------------
 boardid |      10752       2862

.                 eststo col3, add(nofirms r(ndistinct))
(e(nofirms) = 2862 added)

. * observation unit: boardid x ceoid x year
. egen tagbrdceoyr = tag(boardid ceoid year)

. eststo col4: /// new directors
>         reghdfe newdirtrust trust ${firm} ${ceo} if ${sample} & tagbrdceoyr, ///
>                 a(boardid year) cluster(${cluster}) keepsin
WARNING: Singleton observations not dropped; statistical significance is biased (link)
(MWFE estimator converged in 8 iterations)

HDFE Linear regression                            Number of obs   =     10,430
Absorbing 2 HDFE groups                           F(  10,     37) =       6.51
Statistics robust to heteroskedasticity           Prob > F        =     0.0000
                                                  R-squared       =     0.3523
                                                  Adj R-squared   =     0.0414
                                                  Within R-sq.    =     0.0011
Number of clusters (mainethcode) =         38     Root MSE        =     0.0499

                           (Std. err. adjusted for 38 clusters in mainethcode)
------------------------------------------------------------------------------
             |               Robust
 newdirtrust | Coefficient  std. err.      t    P>|t|     [95% conf. interval]
-------------+----------------------------------------------------------------
       trust |    .041065     .01675     2.45   0.019     .0071263    .0750038
     firmage |   -.001693   .0007666    -2.21   0.033    -.0032463   -.0001397
    firmage2 |  -3.68e-06   .0000106    -0.35   0.732    -.0000252    .0000179
      gender |  -.0053939   .0075302    -0.72   0.478    -.0206515    .0098637
         age |  -.0001263   .0012867    -0.10   0.922    -.0027334    .0024808
        age2 |  -1.06e-06   .0000116    -0.09   0.928    -.0000247    .0000225
      yrinco |   .0001773   .0001016     1.75   0.089    -.0000285    .0003831
             |
   education |
          2  |   .0047441    .005469     0.87   0.391    -.0063371    .0158253
          3  |    .003478   .0058225     0.60   0.554    -.0083195    .0152756
          4  |   .0047328   .0065862     0.72   0.477    -.0086121    .0180776
             |
       _cons |   .5733747   .0573548    10.00   0.000     .4571629    .6895866
------------------------------------------------------------------------------

Absorbed degrees of freedom:
-----------------------------------------------------+
 Absorbed FE | Categories  - Redundant  = Num. Coefs |
-------------+---------------------------------------|
     boardid |      3363           0        3363     |
        year |        12           1          11     |
-----------------------------------------------------+

.                 estadd local sample     "New"

added macro:
             e(sample) : "New"

.                 estadd local obsunit    "F-Y-CEO"

added macro:
            e(obsunit) : "F-Y-CEO"

.                 estadd local FE         "X"

added macro:
                 e(FE) : "X"

.                 estadd local controls   "X"

added macro:
           e(controls) : "X"

.                 distinct boardid if e(sample)

         |        Observations
         |      total   distinct
---------+----------------------
 boardid |      10430       3363

.                 eststo col4, add(nofirms r(ndistinct))
(e(nofirms) = 3363 added)

. eststo col5: /// staying directors
>         reghdfe staydirtrust trust ${firm} ${ceo} if ${sample} & tagbrdceoyr, ///
>                 a(boardid year) cluster(${cluster}) keepsin
WARNING: Singleton observations not dropped; statistical significance is biased (link)
(MWFE estimator converged in 8 iterations)

HDFE Linear regression                            Number of obs   =      9,293
Absorbing 2 HDFE groups                           F(  10,     37) =       5.60
Statistics robust to heteroskedasticity           Prob > F        =     0.0000
                                                  R-squared       =     0.3759
                                                  Adj R-squared   =     0.0212
                                                  Within R-sq.    =     0.0016
Number of clusters (mainethcode) =         38     Root MSE        =     0.0517

                           (Std. err. adjusted for 38 clusters in mainethcode)
------------------------------------------------------------------------------
             |               Robust
staydirtrust | Coefficient  std. err.      t    P>|t|     [95% conf. interval]
-------------+----------------------------------------------------------------
       trust |   .0529298   .0188103     2.81   0.008     .0148164    .0910431
     firmage |  -.0014457   .0011841    -1.22   0.230    -.0038448    .0009534
    firmage2 |  -3.13e-06   .0000106    -0.30   0.769    -.0000246    .0000183
      gender |  -.0061656   .0063904    -0.96   0.341    -.0191137    .0067825
         age |  -.0005392   .0011061    -0.49   0.629    -.0027804    .0017019
        age2 |   2.32e-06   .0000102     0.23   0.821    -.0000184     .000023
      yrinco |    .000152   .0001324     1.15   0.258    -.0001162    .0004202
             |
   education |
          2  |   .0019326   .0091541     0.21   0.834    -.0166154    .0204807
          3  |  -.0009238   .0094557    -0.10   0.923    -.0200829    .0182353
          4  |   .0007284   .0102243     0.07   0.944     -.019988    .0214448
             |
       _cons |   .5793408    .052334    11.07   0.000      .473302    .6853796
------------------------------------------------------------------------------

Absorbed degrees of freedom:
-----------------------------------------------------+
 Absorbed FE | Categories  - Redundant  = Num. Coefs |
-------------+---------------------------------------|
     boardid |      3347           0        3347     |
        year |        12           1          11     |
-----------------------------------------------------+

.                 estadd local sample     "Staying"

added macro:
             e(sample) : "Staying"

.                 estadd local obsunit    "F-Y-CEO"

added macro:
            e(obsunit) : "F-Y-CEO"

.                 estadd local FE         "X"

added macro:
                 e(FE) : "X"

.                 estadd local controls   "X"

added macro:
           e(controls) : "X"

.                 distinct boardid if e(sample)

         |        Observations
         |      total   distinct
---------+----------------------
 boardid |       9293       3347

.                 eststo col5, add(nofirms r(ndistinct))
(e(nofirms) = 3347 added)

. eststo col6: /// leaving directors
>         reghdfe leftdirtrust trust ${firm} ${ceo} if ${sample} & tagbrdceoyr, ///
>                 a(boardid year) cluster(${cluster}) keepsin
WARNING: Singleton observations not dropped; statistical significance is biased (link)
(MWFE estimator converged in 8 iterations)

HDFE Linear regression                            Number of obs   =      7,756
Absorbing 2 HDFE groups                           F(  10,     37) =       5.44
Statistics robust to heteroskedasticity           Prob > F        =     0.0001
                                                  R-squared       =     0.4048
                                                  Adj R-squared   =     0.0528
                                                  Within R-sq.    =     0.0021
Number of clusters (mainethcode) =         38     Root MSE        =     0.0474

                           (Std. err. adjusted for 38 clusters in mainethcode)
------------------------------------------------------------------------------
             |               Robust
leftdirtrust | Coefficient  std. err.      t    P>|t|     [95% conf. interval]
-------------+----------------------------------------------------------------
       trust |  -.0440413   .0318032    -1.38   0.174    -.1084806     .020398
     firmage |   .0011532   .0023359     0.49   0.624    -.0035798    .0058863
    firmage2 |  -2.64e-06   4.38e-06    -0.60   0.551    -.0000115    6.24e-06
      gender |   .0074869   .0064099     1.17   0.250    -.0055008    .0204746
         age |   .0015309   .0008872     1.73   0.093    -.0002668    .0033285
        age2 |  -.0000126   9.12e-06    -1.38   0.176    -.0000311    5.90e-06
      yrinco |   .0000942   .0001233     0.76   0.450    -.0001557     .000344
             |
   education |
          2  |  -.0021002   .0070204    -0.30   0.766    -.0163248    .0121244
          3  |   .0026132   .0066469     0.39   0.696    -.0108547    .0160811
          4  |   .0025663   .0098433     0.26   0.796    -.0173781    .0225107
             |
       _cons |   .5033219   .0625215     8.05   0.000     .3766414    .6300025
------------------------------------------------------------------------------

Absorbed degrees of freedom:
-----------------------------------------------------+
 Absorbed FE | Categories  - Redundant  = Num. Coefs |
-------------+---------------------------------------|
     boardid |      2862           0        2862     |
        year |        12           1          11     |
-----------------------------------------------------+

.                 estadd local sample     "Leaving"

added macro:
             e(sample) : "Leaving"

.                 estadd local obsunit    "F-Y-CEO"

added macro:
            e(obsunit) : "F-Y-CEO"

.                 estadd local FE         "X"

added macro:
                 e(FE) : "X"

.                 estadd local controls   "X"

added macro:
           e(controls) : "X"

.                 distinct boardid if e(sample)

         |        Observations
         |      total   distinct
---------+----------------------
 boardid |       7756       2862

.                 eststo col6, add(nofirms r(ndistinct))
(e(nofirms) = 2862 added)

. eststo col7: /// all directors
>         reghdfe meandirtrust trust ${firm} ${ceo} if ${sample} & tagbrdceoyr, ///
>                 a(boardid year) cluster(${cluster}) keepsin
WARNING: Singleton observations not dropped; statistical significance is biased (link)
(MWFE estimator converged in 7 iterations)

HDFE Linear regression                            Number of obs   =     29,266
Absorbing 2 HDFE groups                           F(  10,     37) =      13.14
Statistics robust to heteroskedasticity           Prob > F        =     0.0000
                                                  R-squared       =     0.7945
                                                  Adj R-squared   =     0.7659
                                                  Within R-sq.    =     0.0035
Number of clusters (mainethcode) =         38     Root MSE        =     0.0122

                           (Std. err. adjusted for 38 clusters in mainethcode)
------------------------------------------------------------------------------
             |               Robust
meandirtrust | Coefficient  std. err.      t    P>|t|     [95% conf. interval]
-------------+----------------------------------------------------------------
       trust |   .0088527   .0035999     2.46   0.019     .0015586    .0161467
     firmage |  -.0003389   .0001756    -1.93   0.061    -.0006946    .0000168
    firmage2 |  -4.67e-06   2.24e-06    -2.08   0.044    -9.21e-06   -1.23e-07
      gender |  -.0013936   .0015067    -0.92   0.361    -.0044464    .0016593
         age |   .0006506   .0002073     3.14   0.003     .0002306    .0010705
        age2 |  -5.96e-06   1.89e-06    -3.15   0.003    -9.79e-06   -2.12e-06
      yrinco |    .000034     .00002     1.70   0.098    -6.62e-06    .0000746
             |
   education |
          2  |  -.0009879   .0022951    -0.43   0.669    -.0056383    .0036625
          3  |  -.0015585     .00238    -0.65   0.517    -.0063809    .0032639
          4  |  -.0006795   .0026959    -0.25   0.802    -.0061419    .0047828
             |
       _cons |   .5454804   .0083406    65.40   0.000     .5285808      .56238
------------------------------------------------------------------------------

Absorbed degrees of freedom:
-----------------------------------------------------+
 Absorbed FE | Categories  - Redundant  = Num. Coefs |
-------------+---------------------------------------|
     boardid |      3555           0        3555     |
        year |        12           1          11     |
-----------------------------------------------------+

.                 estadd local sample     "All"

added macro:
             e(sample) : "All"

.                 estadd local obsunit    "F-Y-CEO"

added macro:
            e(obsunit) : "F-Y-CEO"

.                 estadd local FE         "X"

added macro:
                 e(FE) : "X"

.                 estadd local controls   "X"

added macro:
           e(controls) : "X"

.                 distinct boardid if e(sample)

         |        Observations
         |      total   distinct
---------+----------------------
 boardid |      29266       3555

.                 eststo col7, add(nofirms r(ndistinct))
(e(nofirms) = 3555 added)

. 
. esttab /*using "Table V_Director selection.tex"*/, ///
>         cells(b(star fmt(3)) se(par fmt(3))) starlevels(* 0.1 ** 0.05 *** 0.01) ///
>         nomtitle collabels(none) label varwidth(18) modelwidth(12)  ///
>         mgroups("Individual director's trust" "Average director's trust", pattern(1 0 0 1 0 0 0) ///
>                 prefix(\multicolumn{@span}{c}{) suffix(}) span) ///
>         keep(trust) coeflab(trust "CEO's trust") ///
>         stats(sample obsunit FE controls N nofirms, fmt(%9.0fc %9.0fc) ///
>                 lab("Director sample" "Observation unit" "Firm \& Year FEs" "Baseline controls" "Observations" "Firms"))

----------------------------------------------------------------------------------------------------------------------------------
                   \multicolumn{3}{c}{Individual director's trust} \multicolumn{4}{c}{Average director's trust}                   
                            (1)             (2)             (3)             (4)             (5)             (6)             (7)   
----------------------------------------------------------------------------------------------------------------------------------
CEO's trust               0.029*          0.037**        -0.047*          0.041**         0.053***       -0.044           0.009** 
                        (0.016)         (0.016)         (0.025)         (0.017)         (0.019)         (0.032)         (0.004)   
----------------------------------------------------------------------------------------------------------------------------------
Director sample             New         Staying         Leaving             New         Staying         Leaving             All   
Observation unit      D-F-Y-CEO       D-F-Y-CEO       D-F-Y-CEO         F-Y-CEO         F-Y-CEO         F-Y-CEO         F-Y-CEO   
Firm \& Year FEs              X               X               X               X               X               X               X   
Baseline controls             X               X               X               X               X               X               X   
Observations             17,218          14,428          10,752          10,430           9,293           7,756          29,266   
Firms                     3,363           3,347           2,862           3,363           3,347           2,862           3,555   
----------------------------------------------------------------------------------------------------------------------------------

. 
. cap log close
